[UK] Report finds £100k salary cap could save millions of jobs

[UK] Report finds £100k salary cap could save millions of jobs
16 Oct 2020

A new report has urged HR departments to look more closely at how reward is distributed in their firms. The report suggests that capping the wages of high earners at £100,000 a year and redistributing the money saved could preserve millions of jobs and increase pay for lower earners. The analysis of data from the Annual Survey of Hours and Earnings was conducted by the High Pay Centre and think tank Autonomy. (Link via original reporting)

Their analysis revealed that having a maximum wage of £100,000 would result in the redistribution of the “cash equivalent of more than one million jobs, showing that mass layoffs are not necessary if the very rich earn a little less”. Under this scenario, more than 9.5 million workers would get pay rises and 462,000 high earners receive pay cuts, the report said. People Management reports on the survey results and the climate that has led to such caps being considered.

 

A new report has urged HR departments to look more closely at how reward is distributed in their firms. The report suggests that capping the wages of high earners at £100,000 a year and redistributing the money saved could preserve millions of jobs and increase pay for lower earners. The analysis of data from the Annual Survey of Hours and Earnings was conducted by the High Pay Centre and think tank Autonomy. (Link via original reporting)

Their analysis revealed that having a maximum wage of £100,000 would result in the redistribution of the “cash equivalent of more than one million jobs, showing that mass layoffs are not necessary if the very rich earn a little less”. Under this scenario, more than 9.5 million workers would get pay rises and 462,000 high earners receive pay cuts, the report said. People Management reports on the survey results and the climate that has led to such caps being considered.

 

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